Government owes N$25bln

GOVERNMENT’S domestic debt dropped for the first time in nearly two years last month, reaching N$17,38 billion.

The marginal reducing of about 0,3 per cent compared to April was due to a reduction in debt in Treasury Bills, which fell by N$105 million, Capricorn Investment Holdings (CIH) economist Rowland Brown said on Monday.May figures, however, were 45 higher than a year ago and were slightly below 20 per cent of gross domestic product (GDP), Brown said. Government’s external debt came in at N$7,9 billion. External debt has stayed pretty much constant since the third quarter of last year, he said. In total, Government owed about N$25,3 billion at the end of May, representing 28 per cent of GDP. Finance Minister Saara Kuugongelwa-Amadhila in her budget speech in March said debt levels should climax at about 30 per cent of GDP in 2013-14 as Government tries to tackle unemployment through its Targeted Intervention Programme for Employment and Economic Growth (Tipeeg). It is expected to ease back to about 28 per cent the year after as Government starts reining in spending.Brown said abnormally high receipts from the shared revenue pool of the Southern African Customs Union (Sacu), which is expected to pump N$13,9 billion into state coffers this year, should help Government run its expansionary budget without incurring further excessive debt.